ADB: Indonesia capable of responding to global instability

A corner of Jakarta, Indonesia (Photo: independent.co.uk) Hanoi (VNA) – Indonesia’s economic growth is expected to continue to be robust in 2018 and 2019 amid global headwinds, according to an update of the Asian Development Bank (ADB)’s flagship annual economic publication, Asian Development Outlook (ADO) 2018. According to ADB Country Director for Indonesia Winfried Wicklein, despite a challenging global environment, Indonesia’s economy is forecast to grow at a healthy pace in 2018 and 2019. Economic fundamentals remain solid, with good prospects for growth and inflation under control. The fiscal position remains well managed and measures have been put in place to preserve stability”, he said. Notably, Indonesia continued to apply a prudent fiscal policy, which helped remain the country’s budget deficits low and keep government debt at 30 percent of GDP. However, Wicklein stressed the importance for Indonesia to take measures to boost medium- and long-term prospects for economic growth that is sustainable and benefits all Indonesians. ADO 2018 notes that in the face of global economic uncertainties, including international trade tensions and monetary tightening in the US, effective policies that balance growth and stability goals are critical. ADB predicts that Indonesia’s GDP growth is likely to be 5.2 percent in 2018 and 5.3 percent in the next year. While export growth may moderate in the near term, domestic demand should hold up, even as monetary policy is used to mitigate external pressure and promote stability, the bank said.-VNA